The Hindu Business Line : Bull onslaught

BULLS reigned over Thursday's trading activity. Their dominance during the day led to the initiation of more uptrend counters in the tradable list. The sentiment reading of the tradeable counters stands strongly bullish. Bear domination on Friday is likely to change the sentiment reading in their favour. Otherwise, the prevailing bullish sentiment is likely to continue with a slight change in its value.

Nifty futures recommendation: The August contract opened two points above its previous close and made steady gains during the day's trading. It moved within a band of 36 points. Bulls capitalised the day's entire move. The August contract closed higher with a strong bullish note.

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Bull domination during the day led to the reversal of the downtrend in the August contract. The short trade exited with a loss of 16 points. The exit level for the initiated short position is placed slightly far away.

Stock futures recommendation: There were no new entries or exits to the top-10 tradeable list. The ranking of the list too remains unchanged.

Bear domination on Friday is likely to terminate most of the uptrend counters in the list. On the other hand, the lone downtrend counter-Maruti is likely to be under threat. Buying opportunities are likely to exist in M&M and Maruti. Selling opportunities are likely to exist in ONGC and M&M. The best bet is likely to be the buying in M&M. Bullish trigger level for this counter is placed within a rupee from its closing price. Bull pressure on Friday is likely to trigger the uptrend in this counter.

Cash segment: The composition of the top-10 tradeable list in this segment remains unchanged. The ranking of the list had a minor change. M&M moved to the ninth position followed by Satyam.

Most of the counters in the list are in the uptrend. Except for the uptrend in Infosys and SAIL, all the other counters in the list are likely to be under threat. Limited opportunities are likely to exist for Friday's trading. Buying in Maruti is likely to be the best for Friday's trading. This counter is in the downtrend. The exit and bullish trigger levels for this counter are placed quite closer to its current levels. Bull domination on Friday has the potential to reverse the prevailing downtrend in Maruti.

(Note: All price levels refer to the absolute value of the shares traded on the NSE. There is risk of loss in trading.)

The author is a technical analyst and fund management consultant.